Auditing Ch 1 & 2 Problems

Brandon Hicks

AC437

CH 1 & 2 HW

22 January, 2012

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A. 3) The opinion of an independent party is needed because a company may not be objective with respect to its own financial statements.

B. 2) A discipline that attests to the results of accounting and other functional operations and data.

C. 2) An engagement to report on compliance with statutory requirements.

D. 3) Independence.

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A. 2) A measure of management performance in meeting organizational goals.

B. 3) Operational auditing.

C. 4) It concentrates on seeking aspects of operations in which waste could be reduced by the introduction of controls.

D. 3) Adherence to specific rules or procedures.

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A. Audit services are a type of attestation service. Auditing is evaluating evidence/information to make sure it goes along with set criteria. Attestation services are a type of assurance service where a report is issued about the reliability of an assertion that is made by someone else. Assurance services are independent professional services that improve information quality for decision makers such as management.

B. 1) An attestation service other than an audit service

2) An audit of historical financial statements

3) An attestation service other than an audit service

4) An attestation service other than an audit service

5) An attestation service other than an audit service

6) An attestation service other than an audit service

7) An attestation service that is not an audit service

8) An attestation service other than an audit service

9) An attestation service other than an audit service

10) An assurance service that is not an attestation service

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A. The interest rate for the review report loan is lower than the existing loan because by having the financial statements reviewed by a CPA firm, the information risk is lowered so the bank can offer a lower interest rate knowing there is less risk of not...